# EssilorLuxottica (EL.PA)

Canonical: https://gigainvestors.com/s/EL.PA

Analysis as of: 2026-10-16T07:33:46.373Z. Financial observations: FY2001–FY2025.

Listing currency: EUR. Reporting currency: EUR.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: EUR 148.70 per share; close as of 2026-10-15.

Estimated value: low EUR 82.36 per share, central EUR 93.31 per share, high EUR 107.88 per share. Buy at or below the central value EUR 93.31 per share. Valuation as of 2026-10-16T07:33:46.373Z; scenarios are not confidence intervals.

Expected annual return: 7.3% at the stated quote. About 7.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; FR 10-year bond 4.8% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.26×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.18×

- FY2017: 0.18×

- FY2018: 0.14×

- FY2019: 0.12×

- FY2020: 0.05×

- FY2021: 0.13×

- FY2022: 0.13×

- FY2023: 0.13×

- FY2024: 0.13×

- FY2025: 0.12×

### moat: fail

- ROIC median below threshold

- ROIC, median of available years: 13.8%

- ROIC, second-lowest year: 10.2%

- Typical minus recent gross margin: 1.7 pp

- Typical gross margin (annual median): 62.2%

- Recent gross margin (lower of latest and 3-year median): 60.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.5%

- ROIC including acquisitions, ten-year median: 6.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 37.2%

- FY2017: 47.3%

- FY2018: 10.2%

- FY2019: 10.9%

- FY2020: 3.7%

- FY2021: 12.1%

- FY2022: 14.5%

- FY2023: 14.9%

- FY2024: 13.5%

- FY2025: 14.1%

### economics: pass

- Owner earnings / net income, 5-yr: 1.37×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: EUR 15B

- Net income, five-year total: EUR 11B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -1.0 pp

- Working capital / revenue, change between three-year averages: -6.9 pp

- Working capital / revenue, final three-year average: 14.4%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.51×

- FY2022: 1.33×

- FY2023: 1.35×

- FY2024: 1.36×

- FY2025: 1.37×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 37.2% vs 14.1%

- Per-share earnings: 3.51 to 5.05 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 8.0%

- Ordinary dilution, 5-year annual growth: 1.5%

- Market cap gain: EUR 104B

- Cumulative retained earnings: EUR 15B

- Diluted shares, 10-year annual growth: 8.0%

- Diluted shares, 5-year annual growth: 1.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 4.6%

- Per-share value change: EUR 1.54

- Per-share value, starting three-year median: EUR 3.51

- Per-share value, ending three-year median: EUR 5.05

- Buybacks concentrated in cheaper years (correlation): -0.38

- Average buyback yield: 0.3%

- Buyback history: 8 years

- Debt-funded buybacks: No

- Acquisition spending: EUR 75B

- Cumulative net income, 10 years: EUR 14B

- ROIC, first three-year median: 37.2%

- ROIC, last three-year median: 14.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: EUR 3.69

- FY2017: EUR 3.51

- FY2018: EUR 3.48

- FY2019: EUR 2.42

- FY2020: EUR 0.19

- FY2021: EUR 3.23

- FY2022: EUR 4.81

- FY2023: EUR 5.05

- FY2024: EUR 5.11

- FY2025: EUR 4.93

### accounting: pass

- Sloan accruals: -4.7%

- Receivables to sales index (DSRI): 1.07×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 5.3%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.29×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.05×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.9%

- FY2017: -8.1%

- FY2018: -2.6%

- FY2019: -4.2%

- FY2020: -5.5%

- FY2021: -5.2%

- FY2022: -4.3%

- FY2023: -4.2%

- FY2024: -3.9%

- FY2025: -4.7%

## Holders

## Price story

Down 53% since Oct 2025 · "EssilorLuxottica sales slide as investors turn wary of AI glasses" (finance.yahoo.com, Apr 2026) · sales +7.5%

Story as of 2026-10-16T09:59:57.693Z; price observation 2026-10-15.

Price needs cash profits to grow 6.9% a year for ten years

- 2025-04-23: Ray-Ban Maker EssilorLuxottica to Implement Measures to Mitigate U.S. Tariffs ([finance.yahoo.com](https://finance.yahoo.com/m/fca1036e-83ac-36b8-88a5-5a506c0f8ece/ray-ban-maker.html))

- 2025-07-28: AI Ray-Ban Meta glasses help EssilorLuxottica boost sales ([finance.yahoo.com](https://finance.yahoo.com/news/ai-ray-ban-meta-glasses-172208045.html))

- 2025-09-18: EssilorLuxottica gains as Meta launches three new smart glasses variations ([finance.yahoo.com](https://finance.yahoo.com/news/essilorluxottica-gains-meta-launches-three-093938343.html))

- 2025-10-17: Shares of Ray-Ban maker EssilorLuxottica soar after Meta AI glasses drive revenue beat ([finance.yahoo.com](https://finance.yahoo.com/news/shares-ray-ban-maker-essilorluxottica-071158534.html))

### Sales · FY2024–2025

sales +7.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: EUR 7.1B 

- FY2017: EUR 9.2B 

- FY2018: EUR 11B 

- FY2019: EUR 17B 

- FY2020: EUR 14B 

- FY2021: EUR 20B 

- FY2022: EUR 24B 

- FY2023: EUR 25B 

- FY2024: EUR 27B 

- FY2025: EUR 28B 

### Gross margin · FY2025

gross margin 60.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 58.8% 

- FY2017: 63.8% 

- FY2018: 62.2% 

- FY2019: 62.2% 

- FY2020: 58.9% 

- FY2021: 62.0% 

- FY2022: 63.7% 

- FY2023: 63.2% 

- FY2024: 63.4% 

- FY2025: 60.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in medical instruments & supplies; annual sales are EUR 28.5 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:46.373Z); FY2025: revenue 28491000000; grossProfit 17254000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); EL.PA: EssilorLuxottica Société anonyme designs, manufactures, and distributes ophthalmic lenses, frames, sunglasses, and instruments and equipment in North America, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific. It offers lens, eyewear, contact lenses, reading glasses under Essilor, Varilux, Crizal, Eyezen, Stellest, Xperio, Transitions, Ray-Ban, Oakley, Barberini, KODAK Lens, Nikon, Shamir Optical, eyexpert, iWear, Humanware, Optifog, Persol, Oliver Peoples, Vogue Eyewear, Arnette, Alain Mikli, Costa, Bliz, Native Eyewear and Bolon, and Foster Grant brands. The company also provides vision assessment, eye pathology diagnosis and treatment, finishing equipment, fitting parameter measurement, small tools, and consumables. In addition, it offers SPECTRALIS, a multimodal imaging platform for diagnosis and treatment; RetinAI; Espansione Group; Cellview Imaging; ANTERION, a multidisciplinary all-in-one anterior segment imaging solution for measurements; apparel, footwear and accessories; and high-tech equipment for optical surfacing, polishing, measuring, coating, and finishing, as well as consumables, tools, and services under the Satisloh brand. Further, the company designs, develops, markets, and maintains diagnostics, refraction, lens edging and mounting instruments for opticians and prescription laboratories, and measurement; and optometry instruments for eyecare professionals, schools, occupational medicine centers, military, and other institutions. It sells its products to independent opticians, distributors, third-party e-commerce platforms, and large retail chains in the eyecare and eyewear industry; and consumers through the network of brick and mortar retail networks and its online channels. The company was formerly known as Essilor International Société Anonyme and changed its name to EssilorLuxottica Société anonyme in October 2018. EssilorLuxottica Société anonyme was founded in 1849 and is headquartered in Paris, France.

### Why customers stay

Margins ranged from 60.6% to 63.4% during 2023–25; it earns 13.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:46.373Z); FY2023: grossProfit / revenue = 63.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:46.373Z); FY2024: grossProfit / revenue = 63.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:46.373Z); FY2025: grossProfit / revenue = 60.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:46.373Z); 10-year return on capital observations [[2016,0.3715578239183389],[2017,0.4731649470573115],[2018,0.10161602082812848],[2019,0.10938077860683877],[2020,0.03715319182764926],[2021,0.12051659101080492],[2022,0.144628110461967],[2023,0.14870589761127984],[2024,0.13491007022056833],[2025,0.14088338776802717]]; median 0.13789672899429775. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 64% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:46.373Z); Gross margin observations: [[2021,0.6197780020181635],[2022,0.6366048828284477],[2023,0.6319354203583383]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back EUR 376 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:46.373Z); FY2016: growth capex 0; upkeep 294000000; owner earnings 966000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:46.373Z); FY2017: growth capex 123000000; upkeep 541000000; owner earnings 789000000. Growth capex / owner earnings = 0.155893536121673.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:46.373Z); FY2018: growth capex 0; upkeep 710000000; owner earnings 1592000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:46.373Z); FY2019: growth capex 0; upkeep 903000000; owner earnings 1865400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:46.373Z); FY2020: growth capex 0; upkeep 650000000; owner earnings 1203400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:46.373Z); FY2021: growth capex 0; upkeep 1030000000; owner earnings 2191600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:46.373Z); FY2022: growth capex 0; upkeep 1572000000; owner earnings 2864600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:46.373Z); FY2023: growth capex 0; upkeep 1531000000; owner earnings 3082000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:46.373Z); FY2024: growth capex 0; upkeep 1522000000; owner earnings 3205600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:46.373Z); FY2025: growth capex 0; upkeep 1525000000; owner earnings 3168200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:46.373Z); Dividend observations: [[2016,79000000],[2017,440000000],[2018,484000000],[2019,887000000],[2020,503000000],[2021,138000000],[2022,454000000],[2023,487000000],[2024,1163000000],[2025,547000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:46.373Z); FY2025: cash repurchases 376000000 EUR.

### Are managers owners

Insiders own 37% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); EL.PA SharesStats.PercentInsiders = 36.994 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 6.9% yearly over ten years; actual growth was 5.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:46.373Z); Ten-year compound average after fade. Initial solved rate 0.08590993682724735. Price 148.7; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 3.8133250580644447 → FY2025 6.751538605793. Closing-price date 2026-10-15.

## Monthly share-price history (EUR per share)

- 2016-11: EUR 97.95 per share

- 2016-12: EUR 105.05 per share

- 2017-01: EUR 106.07 per share

- 2017-02: EUR 105.83 per share

- 2017-03: EUR 111.46 per share

- 2017-04: EUR 116.40 per share

- 2017-05: EUR 115.81 per share

- 2017-06: EUR 109.01 per share

- 2017-07: EUR 104.80 per share

- 2017-08: EUR 103.77 per share

- 2017-09: EUR 102.50 per share

- 2017-10: EUR 106.37 per share

- 2017-11: EUR 105.73 per share

- 2017-12: EUR 112.48 per share

- 2018-01: EUR 111.95 per share

- 2018-02: EUR 105.54 per share

- 2018-03: EUR 107.25 per share

- 2018-04: EUR 110.62 per share

- 2018-05: EUR 114.39 per share

- 2018-06: EUR 118.31 per share

- 2018-07: EUR 123.49 per share

- 2018-08: EUR 121.44 per share

- 2018-09: EUR 124.72 per share

- 2018-10: EUR 118.16 per share

- 2018-11: EUR 109.74 per share

- 2018-12: EUR 108.08 per share

- 2019-01: EUR 108.28 per share

- 2019-02: EUR 104.17 per share

- 2019-03: EUR 95.29 per share

- 2019-04: EUR 106.17 per share

- 2019-05: EUR 100.94 per share

- 2019-06: EUR 112.29 per share

- 2019-07: EUR 120.02 per share

- 2019-08: EUR 131.37 per share

- 2019-09: EUR 129.41 per share

- 2019-10: EUR 133.86 per share

- 2019-11: EUR 137.97 per share

- 2019-12: EUR 132.89 per share

- 2020-01: EUR 131.37 per share

- 2020-02: EUR 120.46 per share

- 2020-03: EUR 96.17 per share

- 2020-04: EUR 110.23 per share

- 2020-05: EUR 113.27 per share

- 2020-06: EUR 111.80 per share

- 2020-07: EUR 109.79 per share

- 2020-08: EUR 109.69 per share

- 2020-09: EUR 113.66 per share

- 2020-10: EUR 103.92 per share

- 2020-11: EUR 118.75 per share

- 2020-12: EUR 124.81 per share

- 2021-01: EUR 114.49 per share

- 2021-02: EUR 132.10 per share

- 2021-03: EUR 135.87 per share

- 2021-04: EUR 135.43 per share

- 2021-05: EUR 138.84 per share

- 2021-06: EUR 152.30 per share

- 2021-07: EUR 155.74 per share

- 2021-08: EUR 162.69 per share

- 2021-09: EUR 161.95 per share

- 2021-10: EUR 175.06 per share

- 2021-11: EUR 173.22 per share

- 2021-12: EUR 183.22 per share

- 2022-01: EUR 163.24 per share

- 2022-02: EUR 153.36 per share

- 2022-03: EUR 162.73 per share

- 2022-04: EUR 160.28 per share

- 2022-05: EUR 146.83 per share

- 2022-06: EUR 139.83 per share

- 2022-07: EUR 149.18 per share

- 2022-08: EUR 146.05 per share

- 2022-09: EUR 137.34 per share

- 2022-10: EUR 156.91 per share

- 2022-11: EUR 173.50 per share

- 2022-12: EUR 165.57 per share

- 2023-01: EUR 164.30 per share

- 2023-02: EUR 160.87 per share

- 2023-03: EUR 162.44 per share

- 2023-04: EUR 175.55 per share

- 2023-05: EUR 164.83 per share

- 2023-06: EUR 168.90 per share

- 2023-07: EUR 179.01 per share

- 2023-08: EUR 170.17 per share

- 2023-09: EUR 161.62 per share

- 2023-10: EUR 166.98 per share

- 2023-11: EUR 171.36 per share

- 2023-12: EUR 177.70 per share

- 2024-01: EUR 178.39 per share

- 2024-02: EUR 191.95 per share

- 2024-03: EUR 205.20 per share

- 2024-04: EUR 196.49 per share

- 2024-05: EUR 205.30 per share

- 2024-06: EUR 201.20 per share

- 2024-07: EUR 211.70 per share

- 2024-08: EUR 214.20 per share

- 2024-09: EUR 212.60 per share

- 2024-10: EUR 215.40 per share

- 2024-11: EUR 229.80 per share

- 2024-12: EUR 235.60 per share

- 2025-01: EUR 265.70 per share

- 2025-02: EUR 286.90 per share

- 2025-03: EUR 265.40 per share

- 2025-04: EUR 252.70 per share

- 2025-05: EUR 244.70 per share

- 2025-06: EUR 232.90 per share

- 2025-07: EUR 260.60 per share

- 2025-08: EUR 260.20 per share

- 2025-09: EUR 276.00 per share

- 2025-10: EUR 317.30 per share

- 2025-11: EUR 308.70 per share

- 2025-12: EUR 269.90 per share

- 2026-01: EUR 257.90 per share

- 2026-02: EUR 225.20 per share

- 2026-03: EUR 198.40 per share

- 2026-04: EUR 181.25 per share

- 2026-05: EUR 175.15 per share

- 2026-06: EUR 164.05 per share

- 2026-07: EUR 164.05 per share

- 2026-08: EUR 160.35 per share

- 2026-09: EUR 145.60 per share

- 2026-10: EUR 146.30 per share

## Annual estimated value (EUR per share)

- FY2016: low EUR 48.39 per share, central EUR 58.96 per share, high EUR 68.47 per share

- FY2017: low EUR 63.87 per share, central EUR 77.82 per share, high EUR 90.04 per share

- FY2018: low EUR 59.61 per share, central EUR 70.67 per share, high EUR 81.45 per share

- FY2019: low EUR 63.96 per share, central EUR 71.22 per share, high EUR 80.88 per share

- FY2020: low EUR 58.54 per share, central EUR 63.89 per share, high EUR 71.00 per share

- FY2021: low EUR 58.32 per share, central EUR 65.46 per share, high EUR 74.96 per share

- FY2022: low EUR 69.50 per share, central EUR 78.62 per share, high EUR 90.76 per share

- FY2023: low EUR 72.26 per share, central EUR 81.60 per share, high EUR 94.03 per share

- FY2024: low EUR 77.08 per share, central EUR 87.19 per share, high EUR 100.65 per share

- FY2025: low EUR 83.95 per share, central EUR 94.65 per share, high EUR 108.90 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:39:32.354Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.